Alicante is facing a housing crunch that is reshaping the lives of locals and complicating the choices of newcomers. Recent figures from CaixaBank reveal a severe shortage of housing units across the province, sparking concerns about affordability, community stability, and the long-term sustainability of growth in the Costa Blanca region.
A Deficit of Nearly 39,000 Homes
Between 2021 and 2024, Alicante province accumulated a housing deficit of approximately 38,900 homes, according to CaixaBank’s analysis (Cadena SER). The situation worsens when the impact of short-term tourist rentals is considered: with thousands of apartments diverted from the residential market, the real shortage could soar to 86,000 units.
The pressure is visible in the numbers. In the past year alone, property prices in Alicante rose by 12.7%, marking the sharpest increase in nearly two decades. Rental costs have jumped just as fast, forcing households to allocate an increasingly unsustainable share of their income to housing.
Why Is There Such a Shortage?
Several overlapping trends contribute to the housing deficit:
- Tourist Rentals: A significant portion of apartments are used for platforms like Airbnb, reducing supply for long-term residents.
- Expat and Investor Demand: Alicante is a magnet for international buyers, particularly from Northern Europe, creating fierce competition.
- Lagging Construction: Housing development has not kept pace with the rising demand, hindered by bureaucracy and limited land availability.
Impact on Local Residents
The shortage has made life particularly difficult for local families and young professionals. Many are priced out of central Alicante and pushed into surrounding towns such as Elche, San Vicente del Raspeig, or Villajoyosa. The result is longer commutes, weakened neighborhood ties, and declining affordability.
For students and seasonal workers, the crisis is even more pressing: short-term leases dominate the market, making stability almost impossible to achieve.
What Does This Mean for Expats and Buyers?
For foreigners, the picture is more nuanced. Alicante remains more affordable compared to Barcelona, Madrid, or the Costa del Sol. However, buyers should expect continued upward pressure on prices. Renting can also be challenging, with properties disappearing from the market within days.
Expats planning to relocate may need to look beyond Alicante city itself. Nearby towns and secondary coastal destinations offer more accessible prices while remaining connected to Alicante’s services and attractions.
📍 Google Maps: Alicante Province
Looking Ahead
Analysts remain divided on whether this shortage will ease. Some argue that new construction and regulatory measures could help stabilize the market. Others believe the combination of tourism, international demand, and economic growth will keep supply under strain for years to come.
What is clear is that the housing deficit is no longer just a statistic – it is reshaping how and where people live in Alicante. The Costa Blanca’s appeal is undeniable, but for locals, the dream of affordable housing feels increasingly out of reach.
